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A Project ReportON
CONSUMER BEHAVIOR OF SUVS WITH SPECIAL REFERENCE TO
MAHINDRA & MAHINDRA PRODUCTS
Under the guidance of Dr.Mala Kuthiala Submitted by SHASHI BHUSHAN REG. NO. 520966390
IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE IN MASTERS OF BUSINESS ADMINISTRATION
MAY 2010 TO JAN 2011 BUSINESS INSTITUTE OF MANAGEMENT STUDIES
SHIMLA (H.P.)
1
PREAFACE
Today almost all the major co-operation is actively marketing their
product beyond their original homeland borders. So, companies must rethink
their marketing strategies instead of continuing with their existing strategy.
Today company work in a war zone of rapidly changing competitive
environment technological advances, changing govt. politics diminishing
customer loyalty and so on.
Now a day world of stiff competition, the companies with existing
marketing strategies need to be changed in a manner so as to cope up with its
rapidly changing competitive environment, technical up gradation, varying
govt. policies, rules and regulation during customer loyalty etc. in the last few
years the information need to conduct a business has grown rapidly.
So, in this context, the Mahindra and Mahindra is also facing a stiff
competition in the market from its competitors and for this the company is
gearing up themselves to face the competition and conduct a good business
taking successful business decision for more accuracy and timeliness.
As the part of the partial fulfillment of the MBA course a project has been
incorporated in the curriculum during which a study to be under taken in an
organization mainly to take out the newly acquired knowledge and skill from an
actual work situation and take book and classroom teaching give us through
back ground of different functional area devoid of practical experience to how
those area to be administered and managed respectively. This report has given
up an opportunity to gain an inside into a practical applicability of management
concept and theory, learning faster and developed better ability to analysis
2
problems and in decision that contribute significantly for better use of resource
available to the management.
With this view to understand the concept, I have undertaken a project
study in Mahindra and Mahindra, which has equipped me to prepare a report
with a proper solution of the problem face by the organization.
This area of work has chosen by me as this had all the ingredient of
marketing research and other aspect of marketing as well the report offer a
Glimpse of various stage at project work in order to serve purpose of the study
in systematic manner and hope that the findings and recommendation will go
along way in helping in organization.
3
Table Contents
Executive Summary: Page No.
(i) Introduction 5
(ii) Aims & objective 6
(iii) Methodology 7
(iv) Analysis 7 - 8
(v) Conclusions 8 - 9
(vi) Recommendations 9 - 10
Part : I
An Overview of the Company 11 - 45
Part : II
Project Overview
(i) Introduction 46 - 58
(ii) Objective 59 - 61
(iii) Methodology 62 - 63
(iv) Analysis 64 - 84
(v) Conclusions 85 - 86
(vi) Limitations 87
(vii) Recommendations 88 - 89
Part : III
(i) Bibliography 90
(ii) Questionnaire 91 - 95
4
EXECUTIVE SUMMARY
(i) Introduction
Topic
Study on consumer behavior of SUVs with special reference to Mahindra &
Mahindra Products.
Organization
Snowview Automobiles Ltd
Authorized Dealer, Mahindra and Mahindra.
Location Of Study
Shimla (H.P.)
Organizational Guide
Mr.Jagmohan
Manager Snowview automobiles Pvt Ltd.
Duration
2 Months
5
(ii) Aims and Objectives
Primary :
To make a study on consumer buying behavior of SUVs with special
reference to Mahindra and Mahindra in Shimla area.
Secondary :
1. To study their satisfaction level of customers of different four wheelers
available in Shimla.
2. To study the importance of various attribute which effect the purchasing
decision of customers in regard of SUVs.
3. To study the awareness level of different SUVs in Shimla.
4. To study the importance of dealer and their influence in marketing/sale
for SUVs in Shimla.
5. To study consumers buying behaviours.
6. To find out the expectation of the existing possessing and prospective
customers of the company.
7. To study the impact of media on the customers.
8. To study the satisfaction level of the customers on overall performance
and after sale service of their existing SUVs.
9. To study different promotional scheme they expect for purchasing a new
SUVs.
6
(iii) Methodology
(i) Preliminary study.
(ii) Data collection
(iii) Questionnaire Design.
(iv) Sample size
(v) Analysis
(vi) Scope and Limitation.
(iv) Analysis
The project was undertaken to study the consumer buying behavior of
motor SUVs with special reference to Mahindra and Mahindra in Shimla.
Major findings are: -
1. Demographic profile i.e. Age, Occupation and monthly income of the
customer.
2. Regarding the awareness of different brands of motor SUVs all
respondents are well aware.
3. According to the most of the respondent the T.V. ads was the best
media in building awareness followed by the newspaper, friends,
colleague, majoring & family members.
4. Regarding importance of attribute before purchasing the motor SUVs
in over all motor SUVs most of the customer gave importance on brand
image of the company. In case of M&M motorSUVs most of the
7
customer gave importance or fuel efficiency and look on style of the
SUVs.
5. Regarding source of finance most of the customers gave important on
loan and installment facility.
6. Most of the customer gave most importance on high engine power.
(v) Conclusion
This study was conducted to find out the consumer buying behaviour of SUVs
in special reference to the Mahindra and Mahindra in Shimla. The findings and
analysis revealed many advantages as well as disadvantages for the Mahindra &
Mahindra.
Though the Mahindra is the faster growing company and leading in the
market facing a stiff competition from Hyundai and Goyal motors in the
Shimla.
It has been observed that Mahindra adopted many promotional strategies
and company’s marketing channel is also satisfactory.
Now a days people are most aware about after sales service. The dealers
also expect M&M motor SUVs has overcome this problem and facilities should
be improved for meeting the after sales service requirement effectively.
The majority of customers expect loan or installment facilities. The
Mahindra and Mahindra has joined hand with State Bank Of India, and many
Private Banks to promote this facilities.
As most of the existing and prospective customers adults, Mahindra
should introduces stylish Motor SUVs which compete its competitors product.
But Mahindra to meet the expectations of new generation people who are
the prospect, or customers has recently introduce new SUVs hoping to fulfill the
demand of the new generation.
8
As this study was conducted for educational purpose with the aim to give
necessary information to the organization, any mistake by the researchers
should be overlooked considering his inexperience in the field of marketing
research.
(vi) Recommendations
Based on the findings drawn from the project’s analysis, certain
recommendation need to be made as regards to the future course of action for
Mahindra and Mahindra, which can go a long way in improving the Brand
Awareness of the Company in the SUVs market. The main recommendations
are:
1. Mahindra should continue with its range of innovative products. At the
same time try to add value to its existing products so that it can cater to
the present day requirements. As the study reveals that majority of
customers are aged 20 – 40 years the needs and wants should be kept in
mind while designing new products.
2. There should be proper synchronization between order placed an
delivery. The distribution channel should be enhanced and the models
should be readily available in the market.
3. As the buying decision of the buyer has influenced by himself, company
should target them through demonstration and advertisement.
4. As the market for the financial institutions are increasing, the company
should target them through demonstration and advertisement.
9
5. Facilities should be provide to the dealers so that they can extend them to
the customers while purchasing this brand.
6. Increase in sales promotion budgets to develop a point of purchase
display and to participate to a greater extent in Trade shows and similar
kind of shows and this will motivate the non-users to try out the products.
7. The company can make charitable donation to different organizations. It
can extend their helping hand to the people hotted by natural havoc like
flood, draught, earthquake etc. to win the hearts of the mass people which
will build a good image of the Company among them.
8. As the market for the financial institutions are increasing, the company
should come up with various schemes, which will induce them to
influence the customer for the product. This includes offering various
gifts, packages and financial incentives like higher commission as
compared to other four-wheeler companies.
9. Incentives and financial benefits provided to the dealers should be
maximized to maintain their level of satisfaction and motivation.
10
Part 1
An Overview of the company
11
INTRODUCTION
HISTORY OF MAHINDRA & MAHINDRA AUTOMOTIVE
Mahindra & Mahindra Limited is part of the Indian Industrial Conglomerate
Mahindra group based in Mumbai. The company was set up in 1945 in
Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C.
Mahindra along with Malik Ghulam Mohammad.
After India gained independence Malik Ghulam Mohammed moved to Pakistan
where he became the nation's first Finance Minister. Now, with the Mahindra
brothers as the whole sole of the company, its name was changed to Mahindra
& Mahindra in 1948.
Initially set up to manufacture general-purpose utility vehicles, Mahindra &
Mahindra (M&M) was first known for assembly under licence of the iconic
Willys Jeeps in India. M&M introduced Jeeps to India and in no time they
established themselves as the Jeep manufacturers of India. The company later
branched out into the manufacture of Light Commercial Vehicle (LCVs) and
agricultural Tractors, rapidly growing from being a manufacturer of army
vehicles and tractors to an automobile major with a growing global market
presence. At present, M&M is the leader in the utility vehicle segment in India
with its flagship UV Scorpio.
Apart from agricultural tractors and LCVs, Mahindra & Mahindra also showed
its dexterity in manufacturing army vehicles. Soon, it started its operations
abroad, through its plants set up in China, the United Kingdom and the USA.
12
M&M partnered with companies prominent in the international market,
including Renault SA, International Truck and Engine Corporation, USA, in
order to mark its global presence. M&M also started exporting its products to
several countries across the world. Subsequently, it set up its branches including
Mahindra Europe Srl (based in Italy), Mahindra USA Inc., Mahindra
South Africa and Mahindra (China) Tractor Co. Ltd.
At the same time, M&M managed to be the largest manufacturer of tractors in
India, by holding leadership in the market of the country, for around 25 years.
The company is an old hand in designing, developing, manufacturing and
marketing tractors as well as farm implements. It made its entry to the passenger
SUVs segment in India, with the manufacture of Logan (mid-size sedan) in
April 2007, under the Mahindra Renault collaboration.
Soon after the considerable success of Logan, M&M started launching a wide
range of LCVs and three wheelers as well as SUVs including Scorpio and
Bolero. In the present time, Bolero has gained immense popularity in India. It is
one of the most opted vehicles in its class.
MAHINDRA SCORPIO
Mahindra & Mahindra Limited launched Mahindra Scorpio as its first Sports Utility Vehicle in India in 2002.
13
This SUV has redefined the expectations for the design of SUVs with its sturdy
looks and powerful performance, the sophisticated interior design adds to the
further glory to the appearance.
Mahindra Scorpio is also among the best fuel-efficient SUVs of India as the
manufacturer has equipped it with a 2179 cc diesel engine with5- speed
transmission.
MAHINDRA BOLERO
Mahindra Bolero is one of the most successful and popular utility vehicle of the
Mahindra and Mahindra Group. The SUVs is robust in appearance and it has
been elegantly designed, keeping in mind the conditions of the Indian roads.
Mahindra Bolero is also among the best fuel-efficient SUVs of India as the
manufacturer has equipped it with a 2500 cc diesel engine with5- speed
transmission.
MAHINDRA RENAULT LOGAN
Much awaited Mahindra-Renault Logan has been launched in India. This
compact sedan is a spacious, practical and affordable vehicle. The outlook of
Logan is impressive and the basic version is a value for money, however the
top-end versions are a bit high on price. The prominent feature of this SUVs is
its performance, interiors and economy.
14
MAHINDRA XYLO
Mahindra & Mahindra Limited launched their latest Multi Utility Vehicle
(MUV) “Xylo” in India on January 13, 2009. The SUVs boasts of having all the
luxurious features that are seen in today’s sedans, with the ample space of a
utility vehicle. Xylo's muscular stance contributes to its commanding road
presence. Fully packed with the latest features, the MUV is sure to impress
Indian consumers and provide a stiff competition to the other vehicles within its
class.
Performance of Mahindra XYLO
Under the hood of Mahindra Xylo lies a 4-cylinder turbocharged, mEagle diesel
engine, which generates a power of 112bhp @ 3800 rpm at a peak torque of 24
kgm @ 1800-3000 rpm. The powerful engine is developed on the NEF CRDe
platform and is mated to 5-gears manual transmission. The SUVs accelerates
from rest to 60 km/h in just 5.8 seconds.
MILESTONE OF MAHINDRA & MAHINDRA
DUAL HONOURS FOR CHAIRMAN MR. KESHUB MAHINDRA
On August 24, 2009, Economic Times announced the Lifetime Achievement
Award 2008- 09 for our Chairman, Mr. Keshub Mahindra. The award has been
bestowed on his for ‘decades of service to Corporate India’.
SLEW OF HONOURS FOR MR. ANAND MAHINDRA
15
Mr. Anand Mahindra, VC & MD, Mahindra Group, received a number of
prestigious awards including:
The Business Leader of the year Award for the Year 2008-09 by
Economic Times.
Mr Anand Mahindra has been named the Ernst & Young Entrepreneur
of the Year 2009. Mr Mahindra will represent India at the Ernst &
Young World Entrepreneur of the Year Award in Monte SUVslo,
Monaco, in May.
The ‘CEO of the Year’ award at the India Brand Summit 2006 co-
sponsored by Business Standard and ITM Business School in
association with Times Now and DNA newspaper.
The LMA Entrepreneur of the Year 2006 award, instituted by the
Ludhiana Management Association (LMA).
The Most Inspiring Corporate Leader of the Year Award by NDTV
Profit.
AWARDS FOR MAHINDRA AND MAHINDRA GROUP
Nashik Plant was awarded the prestigious CII National Award for Excellence in
Energy Management 2010 for the 3rd Consecutive Year on September 2 2010.
Mahindra & Mahindra Ltd. received the prestigious NDTV Profit Business
Leadership Award 2010 in the Automobile – Four Wheelers category.
16
MAHINDRA RECEIVES AMITY HR EXCELLENCE AWARD
Mahindra & Mahindra was honored with the Amity HR Excellence Award at
the Fourth Amity Global HR Summit 2007 held at the Amity International
Business School, Noida. The Amity HR Excellence Award recognized
Mahindra as one the most admired companies across the global on account of
its innovative strategies for Human Resources Management and Development.
GLOBAL HR EXCELLENCE AWARD FOR M&M
Mahindra & Mahindra won the Global HR Excellence Award for Innovative
HR practices (Manufacturing Sector), in the Asia Pacific HRM Congress, held
in Mumbai. These awards recognize organizations and individuals who have
embraced change, encouraged constructive challenges and demonstrated
entrepreneurial skills in the corporate world.
BEST AUTOMOTIVE MANUFACTURING SUPPLY CHAIN
EXCELLENCE AWARD
Mahindra & Mahindra has been awarded as the organization with the “Best
Automotive Manufacturing Supply Chain Excellence”. The awards were
presented by India Times Mindscape (Times of India Group) along with the
Business India Group at the Express.
Logistics & Supply Chain Award held in Mumbai on September 28, 2007.
Neilson is accredited with the research for the award nominees and winners.
17
HIGH RANKING FOR MAHINDRA
M&M was ranked second in the prestigious and trusted SUVs Company in
India study conducted by TNS. M&M score 127 points, just seven points below
the top ranking company according to a TNS communiqué.
M&M was ranked 14th in The Economic Times prestigious ‘ET
500’ list of top achieving companies in India. The company has
moved up four ranks from last year. To quote from the ‘ET
500’write-up “M&M’s ‘art-to-part’ strategy of diversification into
the auto parts value chain and its plans for new platforms for utility
vehicles and joint venture with Renault for Logan have led to a
gain in ranks.”
M&M was ranked 22nd in Business India’s annual survey of the country’s top companies - Super 100
M&M was ranked 31st in Business Today’s annual survey of India’s most valuable companies.
M&M was ranked 37 in the B & E Power 100 and 4th in the transport Equipment Sector as per the business & ecology magazine issues in 2007.
MILESTONES OF MAHINDRA & MAHINDRA
18
YEAR ACHIVEMENTS
1947 In October, the batch of 75 Utility Vehicles (UVs) imported in CKD condition Willys overland Export Corporation.
1949 Lease of 11,071 sq. yards at Mazagaon from British India Steam navigation. The first Willys Overland Jeep built in India at the assembly plant, Maza
1954 Manufacture of vehicle undertaken in collaboration with Kaiser Jeep Corporation and American Motors Corporation
1962 Indigenous content of Jeep goes up to 70 per cent. To centralize manufacturing operations, 137 acres of land purchased at Kandivli.
1965 FC 150 Petrol Trucks introduced
19
20
21
SCORPIO VARIANTS
SCORPIO M2DI
Features and Specification
Make Mahindra Model Scorpio
Variant M2DI 3200TC Body Type SUV
No. of Doors 5
Fuel Efficiency
City Mileage 9.4 kmpl Highway Mileage 12.4 kmpl Fuel Capacity 60 Liters
Engine Parameter
Displacement 2523cc Power (PS@rpm) 71PS @3200rpm Torque (Nm@rpm) 200Nm @1800rpm
22
Compression Ratio :1 No of Cylinders (cylinder) 4 Valve Mechanism - Bore (mm) - Stroke (mm) - Aspiration Turbo Charged
Cylinder Configuration 4 inline Valves per Cylinder (value) 2
Fuel System DI Fuel Type Diesel
Transmission
Transmission Type Manual Gears/Speeds 5Gears Clutch Type -
Suspension
Front Suspension 2WD Independent, Coil Spring, Anti Roll Bar 4WD Independent, Torsion bar
Rear Suspension Multilink, Coil Spring
23
Steering
Steering Type Rack and Pinion Power Assisted Variable Ratio Minimum Turning Radius (mtrs)
5.6
Brakes
Front Brakes Disc Rear Brakes Drum
Wheel and Tyres
Wheel Tyres Tubeless Tyres Wheel Size 6.5Jx15 Tyres P 235 x70 R15
Dimension and Weights:
Overall Length (mm) 4430 Overall Width (mm) 1817 Overall Height (mm) 1975 Wheel Base (mm) 2680 Ground Clearance (mm) 180 Boot Space (liter) 460 Gross Vehicle Weight (kg) 2510 No. of Doors 5
24
SCORPIO LX
Features and Specification
Make Mahindra Model Scorpio
Variant LX Body Type SUV
No. of Doors 5
Fuel Efficiency
City Mileage 10.5 kmpl Highway Mileage 14.8 kmpl
Fuel Capacity 60 Liters
Engine Parameter
Engine 2.2 Ltr m-Hawk Engine Displacement 2179cc
Power (PS@rpm) 122 bhp @ 4000 rpm Torque (Nm@rpm) 290 Nm @ 1800-2800 rpm Compression Ratio :1 No of Cylinders (cylinder) 4 Valve Mechanism - Bore (mm) - Stroke (mm) - Aspiration Inter Cooled Turbo Charged Cylinder Configuration 4 inline Valves per Cylinder (value) 4 Fuel System CRDE Fuel Type Diesel
25
Transmission
Transmission Type Manual Gears/Speeds 5Gears Clutch Type -
Steering and Suspension
Steering Rack and Pinion, Power assisted Power Steering Yes Front Suspension 2 WD Independent, Coil Spring, Anti
Roll Bar 4 WD Independent, Torsion Bar
Rear Suspension Multilink, Coil Suspension
Brakes
Front Brakes Disc Rear Brakes Drum
Wheel and Tyres
Wheel Tyres Tubeless Tyres Wheel Size 6.5Jx16 Tyres P 235 x70 R16
26
Dimension and Weights:
Overall Length (mm) 4430 Overall Width (mm) 1817 Overall Height (mm) 1975 Wheel Base (mm) 2680 Ground Clearance (mm) 180 Boot Space (liter) 460 Gross Vehicle Weight (kg) 2510 No. of Doors 5
Comfort Features
Power Windows Yes Seats Fabric & Vinyl Combination Seats
Safety Features
Child lock Yes Digital Engine Immobilizer Yes
Except Power Windows and Fabric and vinyl combination seats there is no
other comfort feature present in the Scorpio LX.
In the safety Feature section Scorpio LX has Child Locking and Digital Engine
Immobilizer.
27
SCORPIO SLE
Features and Specification
Make Mahindra Model Scorpio
Variant SLE Body Type SUV
No. of Doors 5
Fuel Efficiency
City Mileage 10.5 kmpl Highway Mileage 13.5 kmpl
Fuel Capacity 60 Liters
Engine Parameter
Engine 2.2 Ltr m-Hawk Engine Displacement 2179cc
Power (PS@rpm) 122 bhp @ 4000 rpm Torque (Nm@rpm) 290 Nm @ 1800-2800 rpm Compression Ratio :1 No of Cylinders (cylinder) 4 Valve Mechanism - Bore (mm) - Stroke (mm) - Aspiration Inter Cooled Turbo Charged Cylinder Configuration 4 inline Valves per Cylinder (value) 4 Fuel System CRDE Fuel Type Diesel
28
Transmission
Transmission Type Manual Gears/Speeds 5Gears Clutch Type -
Steering and Suspension
Steering Rack and Pinion, Power assisted Power Steering Yes Front Suspension 2 WD Independent, Coil Spring, Anti
Roll Bar 4 WD Independent, Torsion Bar
Rear Suspension Multilink, Coil Suspension
Dimension and Weights:
Overall Length (mm) 4430 Overall Width (mm) 1817 Overall Height (mm) 1975 Wheel Base (mm) 2680 Ground Clearance (mm) 180 Boot Space (liter) 460 Gross Vehicle Weight (kg) 2510 No. of Doors 5
Brakes
Front Brakes Disc Rear Brakes Drum
29
Wheel and Tyres
Wheel Tyres Tubeless Tyres Wheel Size 6.5Jx16 Tyres P 235 x70 R16
Comfort Features
Power Windows Yes Seats Full Fabric Seats Voice Assisted System Yes Arm Rest Yes Powered ORVM Yes
Safety Features
Child lock Yes Digital Engine Immobilizer Yes
ABS Yes Central Locking System Yes Front Fog Lamps Yes
With the Power windows and child lock this model of Scorpio consist voice
assisted system and arm rest on the front row and powered ORVM (Outside
Rear View Mirror) which increases its comfort features to a great extend.
30
Scorpio SLE in the safety section includes the features of M2DI and some new
features which include: - ABS (Anti-Braking System), Central Locking System
which provides keys less entry in the vehicle and Front fog lamps.
SCORPIO VLX
Features and Specification
Make Mahindra Model Scorpio
Variant VLX HI-END Body Type SUV
No. of Doors 5
Fuel Efficiency
City Mileage 10.5 kmpl Highway Mileage 13.5 kmpl
Fuel Capacity 60 Liters
Engine Parameter
Engine 2.2 Ltr m-Hawk Engine Displacement 2179cc
Power (PS@rpm) 120 bhp (86.7 kW) @ 4000 rpm Torque (Nm@rpm) 290 Nm @ 1800-2800 rpm Compression Ratio :1 No of Cylinders (cylinder) 4 Valve Mechanism - Bore (mm) -
31
Stroke (mm) - Aspiration Inter Cooled Turbo Charged Cylinder Configuration 4 inline Valves per Cylinder (value) 4 Fuel System CRDE Fuel Type Diesel
Transmission
Transmission Type Manual Gears/Speeds 5Gears Clutch Type -
Steering and Suspension
Steering Rack and Pinion, Power assisted Power Steering Yes Front Suspension 2 WD Independent, Coil Spring, Anti
Roll Bar 4 WD Independent, Torsion Bar
Rear Suspension Multilink, Coil Suspension
Dimension and Weights:
Overall Length (mm) 4430 Overall Width (mm) 1817 Overall Height (mm) 1975 Wheel Base (mm) 2680 Ground Clearance (mm) 180 Boot Space (liter) 460 Gross Vehicle Weight (kg) 2510 No. of Doors 5
32
Brakes
Front Brakes Disc Rear Brakes Drum
Wheel and Tyres
Wheel Tyres Tubeless Tyres Wheel Size 6.5Jx16 Tyres P 235 x70 R16
Comfort Features
Smart Power Windows Yes Seats Full Fabric Seats Voice Assisted System Yes Arm Rest Yes Powered ORVM Yes Cruise Control Yes Audio System with USB & SD
SUVsd Compatibility Yes
Audio Control on Steering Wheel
Yes
Bluetooth Yes
Front Speakers Yes
Safety features
Intellipark Yes Rain Sensor Yes Light Sensor Yes ABS Yes Bluevision Headlamps Yes Speed Alert Audio Signal Yes
33
Scorpio VLX HI-END has the all the safety and comfort features. The comfort
section includes the power windows with anti-pinch technology, Arm rest,
Voice assisted system, Powered ORVM, Cruise control to control the vehicle
speed by the buttons on the steering wheel which provides a great comfort
during the driving, Audio system with USB and SD support, audio control with
steering wheel, Bluetooth enabled and high frequency front speakers. Scorpio
VLX also has adjustable steering through driver can adjust the steering wheel
height according to his convenience.
In the safety section the Scorpio VLX the maximum safety features which
include:-
Intellipark, Rain sensor, Light sensor, ABS (Anti-Breaking System) and speed
alert audio signal.
34
DEALER PROFILE
SNOWVIEW AUTO MOBILES PVT. LTD.
Snowview Automobiles is situated at the Shimla city of H.P. Snowview
Automobiles is one of the authorized dealers of M&M.
Our Distinction
This one of the largest authorized dealer for Mahindra & Mahindra Automotive
in Himachal Pradesh.
Partners in Progress:
We are the preferred partners of M&M Automotives, chiefly due to our
successful sales record and quality. Our facilities have remained unsurpassed,
as we strives everyday to better our self.
Commanding Presence:
Snowview Automobiles as a centralized air conditioned Showrooms of M&M
automotive its kind in Himachal Pradesh, spread gracefully and decorated
elegantly over a impressive10, 000 sq. ft. at Shimla, Being equipped with
affable front office staff and adept professional technicians, Provide a perfect of
quality Service and Reliability.
35
Space Friendly:
The interior are aimed at making you feel completely at ease, in luxury.
Because for us the customer is the king, one who deserve a regal offering. The
setting is apt for times when you need to switch into a relaxed state of mind.
Technology to Stay Ahead:
We are equipped with the latest technology advancement in the industry, in
order to give the best of services it matters. Not just to be part of, but to build
the future, is our moto.
Ambience the Exude Relaxation:
Ours is one of the few service centers to be equipped with a fully-fledged
customer-awaiting lounge. A part from a television and pool table, it had a wed
kiosk to keep u connected all the time.
Service with Commitment:
Our dedicated team of mechanical specialty offers expert treatment for your
vehicle. We ensure consistency in performance each time, without fail.
Attention to Details:
We provide genius spare parts and accessories to ensure exceptional
performance. Every single aspect related to your vehicle is taken SUVs of at our
premises.
36
Dealing Made Convenient:
It is a part of our commitment policy to give advantage to our customer at every
junction. We offer assistance of every kind of our premises itself, which makes
it a one stop facility.
Expert Guidance at Every Step:
Our sales team gives utmost priority to your satisfaction. When you need help to
make right choice, it is ensured that the result it beyond your expectations. Thus
making it a point that you get the best in both luxury and comfort always.
Models:
Mahindra & Mahindra been launching various types of MUVs and SUVs from
the year of 1945, keeping in mind the quality, design, driving, comfort, fuel
efficiency, service and resale value. These from a formidable force that gives
our customers the pride and the joy of the value forever. Which drives M&M is:
Commitment
Leadership
At an eye for appropriate technology
37
At the heart of every M&M is a unique engineering and an optimal mix of
power and economy.
All this is supported by M&M nation-wide dealership network and automated
workshop that provides excellent after sale service.
The technology has constantly exploring new opportunity to define the shape to
tomorrow’s driving technology.
Promotional Activities:
The promotional activities adopted by Snowview Automobiles are
1. Test Driving
2. Free Driving
3. Hoarding
4. Discount
5. Advertisement in Newspaper and Magazine
6. Gift Scheme
7. Free Services
8. Mileage Contents
Promotional expenses have been borne by both Snowview Automobiles and
M&M, shares in advertisement cost.
38
Service Offered
Service offered by the Snowview Automobiles after the sale of the SUVs
Free checkups campaigns
Finance through bank
Demonstration for new products
Acceptance of warranty claims
Working Time in Snowview Automobiles:
Working hours Snowview Automobiles are 10 hours per day starting from
9:30am to 7:30pm with one hour break for lunch and 15 minutes for evening tea
and coffee.
PRODUCTS AVAILABLE AT SNOWVIEW AUTOMOBILES
Snowview Automobiles is a authorized dealer of M&M Company. M&M
Company manufacture various types of MUVs and LCVs.
39
These are:
MAHINDRA “SCORPIO”
SCORPIO VARIANTS EX-SHOWROOM PRICE
SCORPIO M2DI 7,42,500
SCORPIO Lx mHawk 7,92,000
SCORPIO Sle mHawk 9,11,000
SCORPIO Vlx mHawk 10,30,500
SCORPIO Vlx (4X4) HI-END 11,30,000
40
MAHINDRA “XYLO”
XYLO VARIANTS EX-SHOWROOM PRICE
D2 (BASE VERSION)
7,16,000
E4 (LOWER VERSION)
7,81,100
E6 (SPORTZ VERSION)
8,37,500
E8 (TOP VERSION)
8,91,500
41
MAHINDRA “BOLERO”
BOLERO VARIANTS EX-SHOWROOM PRICE
BOLERO DI 5,48,000
BOLERO PLUS 5,71,000
BOLERR SLE 6,07,200
BOLERO SLX 6,54,200
42
MAHINDRA RENAULT “LOGAN”
LOGAN VARIANTS EX SHOWROOM PRICE
LOGAN GLE 1.4 4,84,000
LOGAN GLX 1.6 5,47,000
LOGAN GLS 1.6 5,75,000
LOGAN GLSX 1.6 5,95,000
LOGAN DLE 1.5 5,98,000
LOGAN DLX 1.5 6,40,000
43
Part : II
Project Overview
44
CONSUMER BEHAVIOUR
Our society is a land of diversity. We see diversity at all level exist
among consumers, among nation, culture, food and taste among marketers and
even among consumers behavior theoretically perspective. However, despite
prevailing diversity in our society.
The term consumers behavior refers to the behavior that consumers
display in searching for purchasing, using, evaluating a disposing of product
and service that they expect will satisfy their needs. To study consumers
behavior to spend their available resource to understand and predict behavior in
the market place, it also promote understanding of the role that consumption
play in the lines of individuals.
Consumer behaviour study include the study what they buy, why they
buy it, when they buy, where they buy it, how often they buy it and how often
they use it. Consumer research takes place at every phases of the consumption
process, before the purchase, during the purchase and after the purchase,
consumer behaviour research goes far beyond these facts of consumer
behaviour and considered the uses of consumers make of the good they buy and
their subsequent evaluation.
Consumer behaviour is inter disciplinary, that it is based on concept and
theories about people that have been involved by scientist in such diverse
disciplines as psychology, sociology, social psychology, cultural anthropology
and economics.
Consumer behaviour has been an integral part of strategic market
planning. The belief that ethics and social responsibility should also be Integral
component of every marketing decision is a revised market concept.
The term consumer is often used to describe two different kinds of
consuming entitles the personal consumer and the organizational consumers.
45
The personal consumers buys goods and service for his/her own use for the
organizational encompasses for profit and non profit business, govt. agencies
and institution all of which must buy product, equipment and service in order to
run their organization.
Introduction to buying motives Consumer or buyer is the central figure of all
marketing activities. It is the consumer who determines the growth, prosperity
and even existence of a business enterprise. Hence the marketer should always
feel the pulse of customers. In order to understand the pulse of the customers,
the marketer needs to understand fully the working of buyers mind. It helps him
to plan his production and distribution to suit to the needs and convenience of
customers‘ .It also helps him to plan suitable marketing strategies. Thus it is
very essential for every marketer to know his customers buying motives.
Buying motives Motive is a strong feeling, instinct, desire or emotion that
makes a person to do something. When a motive makes a person to buy a
product, then it becomes a buying motive. Thus buying motive means the
influence and considerations which makes a customer to buy a particular
product. According to D.J.Duncan, ―buying motives are those influences or
considerations which provide the impulse to buy, induce action or determine
choice in the purchase of goods and services‖. Buying motives are mainly two
types, manifest motives and latent motives. Manifest motives are those motives
which are known to the customer and also ready to admit them.
46
Consumer Behaviour: Turning to the Web and New C2C Tools
Consumers today have a multitude of sources from which to gather information
during the vehicle buying process, but the Internet tops the list. The web has
become a standard resource in the shopping process for eight out of 10
consumers when researching SUVs purchases. However, the way they use it is
changing. As the web matures, vehicle buyers are visiting fewer sites and
focussing more on manufacturer and C2C websites and less on third-party
information sites and independent e-tailer sties.
Manufacturer Sites a Key Information Source
Just two years ago, information websites were identified as the number one
information source by web users responding to the SUVs Online survey (tied
with family and friends and manufacturer specific dealer), named by 55% of
consumers. This year, they dropped to the number four source, named by 41%
of web users. In comparison, manufacturer sites are now the top source for
consumers who use the web when researching vehicles, named by 70% of
respondents. Two years ago manufacturer sites held the number three position,
named by 43% of web users. The use of dealer websites has remained steady,
with about half of web users turning to these sites.
Key Factors in Vehicle Choice
When it comes to making their final decision about which vehicle to buy,
consumers focus on factors such as reliability, safety, price and fuel economy.
At the bottom of the list are cash-back incentives, named by fewer than half of
consumers. The importance of incentives as a deciding factor has declined for
47
the past several years, indicating that consumers today seem less interested in
gimmicks when it comes to their SUVs purchases. Where consumers are in the
buying cycle can make a difference in how they rank the factors that influence
their vehicle choice. For example, additional warranty coverage is important to
consumers who are furthest away from the point of purchase; it was named by
69% of respondents who were 13 to 18 months from purchase. However, the
number declines as consumers get closer to actually buying the SUVs: 55% of
respondents who were within three months of purchase said extra warranty
coverage was important. This reflects the fact that consumers will narrow down
the factors that really matter to them as they get closer to the point of purchase.
Demographic factors such as age and gender accounted for some variances. For
example, older consumers tend to put more emphasis on reliability and safety
than do younger respondents. Those in the 50-plus age group were also more
concerned with environmental issues and fuel economy. The youngest
respondents were most likely to rate the ability to research information on the
Internet as an important factor in their vehicle decision. Women tend to rate
most of the factors as more important than do men. The difference was most
pronounced for cash-back incentives, low financing, safety, environmental
issues, fuel economy and additional warranty coverage.
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Going ‘Green’: Fuel Efficiency Takes Centre Stage
Fuel efficiency and environmental issues have moved to the forefront in
consumers’ minds and in automotive industry forums thanks to factors
including global warming, fluctuating gasoline prices, and proposed legislation
to increase fuel efficiency and reduce CO2 emissions. This growing interest in
so-called green vehicles was evident in this year’s SUVs Online research.
More than one-quarter of respondents said they currently own or lease a fuel-
efficient vehicle while almost half said they are planning to buy or thinking
seriously about buying a fuel-efficient vehicle. Not surprisingly, the numbers
for alternative-fuel vehicles were lower. Just 2% of respondents currently own
an alternative-fuel vehicle and 11% are planning to buy or thinking seriously
about buying one. The most common type of alternative-fuel vehicle
represented in the survey were gas/ electric hybrids, named by about half of
current alternative-fuel SUVs owners.
Biodiesel vehicles were the second most common, named by 15%. The
alternative-fuel market remains in transition and it’s still too early to tell how it
will ultimately shake out, although sales are expected to continue to grow. For
example, J.D. Power and Associates predicts that U.S. sales of hybrid vehicles
will increase by 35% in 2007, compared with 2006.
Current ownership of fuel-efficient and alternative-fuel vehicles tended to be
quite consistent across gender and age groups, although the oldest consumers
were somewhat more likely to be seriously thinking about buying an
alternative-fuel SUVs.
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CONSUMER BUYING vs. ORGANIZATIONAL BUYING
Final (or ultimate) consumers purchase for:
personal,
family, or
household use
Organizational consumers purchase for:
further production,
usage in operating the organization, and/or
resale to other consumers
Consumer Buying Behavior
The decision processes and acts of final household consumers associated with
evaluating, buying, consuming, and SUVs products for personal consumption
Consider the purchase an automobile. You generally will not consider different
options until some event triggers a need, such as a problem needing potentially
expensive repair. Once this need has put you "on the market", you begin to ask
your friends for recommendations regarding dealerships and SUVs models.
After visiting several dealerships, you test drive several models and finally
decide on a particular model. After picking up your new SUVs, you have doubts
on the way home, wondering if you can afford the monthly payments, but then
begin to wonder if instead you should have purchased a more expensive but
potentially more reliable model. Over the next five years, the SUVs has several
unexpected breakdowns that lead you to want to purchase a different brand, but
you have been very happy with the services of the local dealership and decide to
again purchase your next SUVs there.
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In this particular case, the following generic model of consumer decision
making appears to hold:
=====>need recognition
=====>information search
=====>evaluation of alternatives
=====>purchase decision
=====>postpurchase behavior
Now consider the purchase of a quart of orange juice. You purchase this product
when you do your grocery shopping once per week. You have a favorite brand
of orange juice and usually do your grocery shopping at the same store. When
you buy orange juice, you always go to the same place in the store to pick it up,
and never notice what other brands are on the shelf or what are the prices of
other brands. How is it that the generic model above works differently in this
second scenario? Why does it work differently? Why would we generally need
the ministrations of a sales person in the sale of a SUVs, but we generally do
not need the help of a salesperson in the purchase of orange juice?
How can the marketer of orange juice get a consumer like you to exert more
effort into information search or to consider alternative products? How is it that
the marketer of your brand got you to ignore alternative competing brands?
What is the involvement of salespeople in sales promotions that might be
associated with products such as orange juice?
Consumer behavior researchers are not so interested in studying the validity of
the above generic model, but are more interested in various factors that
influence how such a model might work.
51
GROUP INFLUENCES ON CONSUMER BEHAVIOR
Culture
the set of basic values, beliefs, norms, and associated behaviors that are learned
by a member of society
Note that culture is something that is learned and that it has a relatively long
lasting effect on the behaviors of an individual. As an example of cultural
influences, consider how the salesperson in an appliance store in the U.S. must
react to different couples who are considering the purchase of a refrigerator. In
some subcultures, the husband will play a dominant role in the purchase
decision; in others, the wife will play a more dominant role.
Social Class
A group of individuals with similar social rank, based on such factors as
occupation, education, and wealth
Reference Groups
Groups, often temporary, that affect a person's values, attitude, or behaviors
E.g., your behaviors around colleagues at work or friends at school are
probably different from your behaviors around your parents, no matter
your age or stage in the family life cycle. If you were a used SUVs
salesperson, how might you respond differently to a nineteen year old
prospect accompanied by her boyfriend from one accompanied by two
girlfriends?
Opinion leader
A person within a reference group who exerts influence on others because
of special skills, knowledge, personality, etc.
52
o You might ask the webmaster at work for an opinion about a
particular software application. Software manufacturers often give
away free beta copies of software to potential opinion leaders with
the hope that they will in turn influence many others to purchase
the product.
Family
A group of people related by blood, marriage, or other socially approved
relationship
ENVIRONMENTAL / SITUATIONAL INFLUENCES ON CONSUMER
BEHAVIOR
Circumstances, time, location, etc.
Do you like grapes? Do you like peas?
You might like grapes as a snack after lunch, but probably not as a dessert after
a fancy meal in a restaurant. You might like peas, but probably not as a topping
on your pancakes. Everyday situations cause an interaction between various
factors which influence our behaviors. If you work for tips (a form of incentive
related to commission) as a waiter or waitress, you must certainly be aware of
such interactions which can increase or decrease your sales.
If you are doing your Saturday grocery shopping and are looking for orange
juice, you are probably much more sensitive to price than if you stop at the
quick store late at night, when you are tired and cranky, after a late meeting at
the office. A prospect shopping for a new automobile while debating the
wisdom of a necessary expensive repair to his SUVs might be more interested
in what SUVs are on the lot than in shopping for the best deal that might
involve a special order.
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INTERNAL INFLUENCES ON CONSUMER BEHAVIOR
Personality
A person's distinguishing psychological characteristics that lead to relatively
consistent and lasting responses to stimuli in the environment
We are each unique as individuals, and we each respond differently as
consumers. For example, some people are "optimizers" who will keep shopping
until they are certain that they have found the best price for a particular item,
while other people are "satisfiers" who will stop shopping when they believe
that they have found something that is "good enough." If you are a salesperson
in a retail shoe store, how might you work differently with these two
personalities?
Lifestyle and Psychographics
lifestyle is a pattern of living expressed through a person's activities,
interests, and opinions
psychographics is a technique for measuring personality and lifestyles to
developing lifestyle classifications.
Motivation: Multiple motives
Consumers usually have multiple motives for particular behaviors. These can be
a combination of:
manifest
known to the person and freely admitted
latent
unknown to the person or the person is very reluctant to admit
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Note: different motives can lead to the same behavior; observing behavior is not
sufficient to determine motives.
TYPES OF CONSUMER PROBLEM-SOLVING PROCESSES
Routinized
used when buying frequently purchased, low cost items
used when little search/decision effort is needed
e.g., buying a quart of orange juice once per week
Limited Problem Solving
used when products are occasionally purchased
used when information is needed about an unfamiliar product in a
familiar product category.
Extended problem solving
used when product is unfamiliar, expensive, or infrequently purchased
e.g., buying a new SUVs once every five years
Under what sorts of conditions would the assistance of a salesperson be needed?
Not needed?
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POST-PURCHASE CONSUMER BEHAVIOR
Satisfaction
After the sale, the buyer will likely feel either satisfied or dissatisfied. If the
buyer beleives that s/he received more in the exchange than what was paid, s/he
might feel satisfied. If s/he believes that s/he received less in the exchange than
what was paid, then s/he might feel dissatisfied. Dissatisfied buyers are not
likely to return as customers and are not likely to send friends, relatives, and
acquaintences. They are also more likely to be unhappy or even abusive when
the product requires post-sale servicing, as when an automobile needs warranty
maintenance.
Cognitive dissonance
It has to do with the doubt that a person has about the wisdom of a recent
purchase
It is very common for people to experience some anxiety after the purchase of a
product that is very expensive or that will require a long term commitment. Jane
and Fred, for example, signed a one year lease on an apartment, committing
themselves to payments of $1500 per month. A week later, they are wondering
if they should have instead leased a smaller $900 apartment in a more rough
part of town; they are not sure if they really can afford this much of a monthly
obligation. Dick and Sally, on the other hand, ultimately rented the $900
apartment, and now are wondering if the savings in rent will be offset by noisy
and sometimes unsafe conditions in this neighborhood.
Perhaps neither couple would be experiencing this anxiety if their landlords had
given them just the smallest of assurances that they had made a good decision.
After a close on products that are expensive or that require a long term
56
commitment, the salesperson should provide the prospect with some reasons to
be happy with the decision. Allow the SUVs buyer to reinforce her own positive
feelings by calling her a week after the purchase to ask how things are going.
Call the new life insurance policy holder after two months to see if there are any
questions; a lack of questions can only help the buyer to convince himself that
he did the right thing.
The four-wheeler Market is even expanding and ever changing showing
new trends. Almost every day, we get to know about the launch of new model
by different company Sales. Their market strategy and also their selling policy.
But as the competitors gets intensified between the domestic and the
multinational brands. The company producing better product enjoy the benefit.
57
Objectives
Shimla is the most developed town in Northen India and a capital of Himachal
Pradesh and to capture this market and establish themselves as a leader is the
prime aim of all the companies so as to have an psychological impact on the
people and to have an edge over other four wheeler companies were not doing
great business in This region from the very beginning. It was so because the
prices of the product were high and the customer were not fully aware of proper
advertisement facility, which is key factor in influencing a consumer. Earlier
M&M product was almost enjoying the monopoly market but now Hyundai,
Maruti and TATA entered the market with various promotional schemes and
changing the market scenario.
Nowadays with the advent of financial scheme by the commercial Bank
and Hire purchase companies, the four-wheeler company has been given new
dimension. But with the introduction of new models, the greater market opened
up for all the SUVs companies, which ultimately led to a stiff competition
between the brands.
Today all the companies namely Hyundai, Toyota, Hyundai, TATA,
Skoda, Chevrolet, Ford, Mahindra etc. are trying to grab the market. M&M is
enjoying good reputation in SUVs segment in Shimla market for its after sales
service. According to research, M&M is the largest SUVs manufacture in
India.
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1. To study their satisfaction level of customers of different SUVs available
in Shimla.
2. To study the importance of various attribute which effect the purchasing
decision of customers in regard of SUVs.
3. To study the awareness level of different SUVs in Shimla.
4. To study the importance of dealer and their influence in marketing/sale
for SUVs in Shimla.
5. To study consumers buying behaviours.
6. To find out the expectation of the existing possessing and prospective
customers of the company.
7. To study the impact of media on the customers.
8. To study the satisfaction level of the customers on overall performance
and after sale service of their existing SUVs.
9. To study different promotional scheme they expect for purchasing a new
SUV.
Various segments of Mahindra are:
Mahindra & Mahindra Limited is part of the Indian Industrial Conglomerate
Mahindra group based in Mumbai. The company was set up in 1945 in
Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C.
Mahindra along with Malik Ghulam Mohammad.
After India gained independence Malik Ghulam Mohammed moved to Pakistan
where he became the nation's first Finance Minister. Now, with the Mahindra
brothers as the whole sole of the company, its name was changed to Mahindra
& Mahindra in 1948.
Initially set up to manufacture general-purpose utility vehicles, Mahindra &
Mahindra (M&M) was first known for assembly under licence of the iconic
59
Willys Jeeps in India. M&M introduced Jeeps to India and in no time they
established themselves as the Jeep manufacturers of India. The company later
branched out into the manufacture of Light Commercial Vehicle (LCVs) and
agricultural Tractors, rapidly growing from being a manufacturer of army
vehicles and tractors to an automobile major with a growing global market
presence. At present, M&M is the leader in the utility vehicle segment in India
with its flagship UV Scorpio.
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METHODOLOGY
(1) Preliminary Survey: - The project study was undertaken general
discussion and informal interview with the customer both possessing and
prospective. The objective were set mainly to gain an idea about
consumers buying behaviors of SUVs.
(2) Data Collection: - The data were collected from primary sources. The
primary data were collected from the customer both possessing and
prospective. Surveying method through personal or direct interviews with
the help of questionnaire-designed specification for the purpose did this.
(3) Questionnaire Design:- Primary data was collected through well framed
questionnaire. The questionnaire had two parts, one part for possessing
customers and other part for prospective customer. Question was framed
keeping mind. The various information required as per the objectives.
Each question was directed towards getting information regarding M&M
as well as other competitors. The questionnaire contained both open
ended and close ended question. Also question with multiple-choice
answers, degree of importance scale etc. were included. All effort were
made to that the questionnaire was simple and precise and also adequate
SUVse was taken about the language, structure and format of
questionnaires.
(4) Sample Size: The sample was selected on the basis of simple random
sampling. A total 50 customer surveyed where 44 were processing and 6
were prospective customers.
The total sample size in segmented under the following zones:
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Zones:
1. Snowview Automobiles.
2. Main Road, Kachi Ghati.
3. NH22.
4. Various business establishments in Shimla.
(5) Analysis: The data collected from the customer were analysed using
different standard statistical tools and techniques each of the question
were analyzed to find out the purchasing behaviour of different SUVs
with reference to M&M.
(6) Scope: The scope of the project is define by the objective of the study it
self. If the study was basically for the fulfillment at its objectives. This
means that scope of this project study is restricted to consumers buying
behaviours of M&M SUVs among the other brand in the market.
Scope of this project is also restricted to the area of field survey in
Shimla. The study does not include any other area like finance personnel
product etc.
(7) Limitations: With many point the study of this project suffered from
many limitation also, likewise as the sample is low I cannot analyze
many respondent, as the survey may also suffer from bais results.
(8) Recommendation: Recommendation were made or the based of finding
drawn from the project analysis.
(9) Conclusion: Conclusion were made on the finding and analysis of the
survey.
62
DATA ANALYSIS
AND
INTERPRETATIONS
OF THE
QUESTIONNAIRE
As the consumers play a key role in the today’s market; their preferences,
attitude and perceptions are of utmost value to the marketers keeping all the
objectives of the study in mind and to give a proper dimension to the study
undertaken, a comprehensive consumer survey was undertaken with the aid of a
well-framed questionnaire. The detail of the findings have been fragmented as:
Demographic profile segment: The analysis on demographic profile has been
done on the basis of Age group, Occupation and Monthly income:
63
Q. No 1. Occupation Considered
This question was put forwarded to extract a profile factor of the respondent.
The prime objective of this question was to know the occupation of the
respondent. Though this it can be analysed that which segment of people have
like for which brands. This question helped to extract the background of the
customers owning and not owning SUVs.
Table No. 1.1
Occupation Percentage People
Service 30% 15
Business 40% 20
Students 20% 10
Others 10% 5
Diagram 1.1
From the responses obtained, it was found that the most of the Businessman
seemed to score high followed by service holder in possession of SUVs.
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Q. No 2. AGE GROUP
The age group, which is one of the important roles in the buying behaviour of
the customer, was extracted through this question. It was attempted to cover
most of the age groups in various slabs.
Table No. 1.2
Age groups Percentage
20-25 2%
26-30 8%
31-35 24%
36-40 40%
Above 40 years 26%
Diagram 1.2
Age Group
The responses revealed that maximum number of SUVs possessed by respondents in the age group of 36 – 40. Age group above 40 years followed it. The least was found to be in the age group of 20-25 years.
65
Q. No 3. INCOME PROFILE OF THE RESPONDENTS
Since the income of a respondent is also important in making decision to buy a
SUVs, therefore, this question was framed to extract their level of income. The
slabs of income considered for the purpose were ranging from Rs.15,000/-
(minimum) and above Rs.45,000/-.
Table No. 1.3
Income slab Percentage
Rs.15,000 – Rs.25,000/- 44%
Rs.25,000 – Rs.35,000/- 30%
Rs.35,000 – Rs.45,000/- 18%
Above Rs.45,000/- 8%
Diagram 1.3
Out of the total respondents, most of them were found to be in the income slab of Rs.15,000 – Rs.25,000/- followed by respondents in the age group of Rs.25,000 – Rs.35,000/-.
66
Q.NO. 4. AWARENESS ON BRANDS OF SUVs
The respondents in response to this question revealed the awareness about the
existing brands of SUVs in the market. To reveal it, they were given options of
various brands that are playing in the market of Shimla.
Table No. 1.4
Brands Percentage
Hyundai 100%
Maruti 100%
Chevrolet 76%
Toyota 100%
Skoda 70%
Ford 100%
TATA 100%
Mahindra 100%
Diagram 1.4
It is seemed that almost every brand is well aware by thr respondent.
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Q. No. 5. MEDIA OF AWARENESSAn endeavor was made to know the source of information or the awareness of
different brands of existing SUVs in the market of Shimla, to the customers. To
respond to this query, respondents were opted with various sources of media.
Table No. 1.5
Media Percentage
Newspapers 82%
Magazines 64%
T.V. Advertisement 100%
Trade Fairs 20%
Friends 80%
Family Members 64%
Others 46%
Diagram 1.5
Of the different media, TV Advertisement ranked top in creating brand
awareness among the perceptual mindset of the customers, which in turn effects
the buying behaviour of a customer.
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Q. No. 6. Do You Own a SUV
Ownership of SUVs was the chief extraction of this question. To this question
only
88% of the respondents were found positive whereas the remaining 12% were
not in possession of a SUVs of their own.
Table No. 1.6
Media Percentage
Yes 88%
No 12%
Diagram 1.6
The question revealed that, of the 50 respondents only 44 of them owns a SUVs
whereas rest 6 do not possess SUV.
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PART A
Questions of Part A were targeted to those respondents who own a SUV.
These questions were put forwarded to know the brand of possessed by them,
attributes they look for, payment patterns etc. The deliberation of each questions
are discussed below separately below:
Q No. 1. Most of the brands of SUVs existing in the market of Shimla were
given to choose from by the respondents. Accordingly, respondents made their
responses favoring mostly for Mahindra followed by Hyundai.
Table 2.1
Brands Percentage
Hyundai 27.27%
Fiat 0%
Mahindra 40.90%
Chevrolet 4.5%
Toyota 0%
TATA 20.45%
Maruti 4.5%
Skoda 0%
Ford 2.27%
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Diagram 2.1
71
Q.No. 2. This question was attempted to extract the factors, which plays a
major role in the buying behaviour of the customers. It was attempted to cover
most of the factors to make this extract more effective and productive.
Table No. 2.2
Sl. No.
Attributes Very Important
Important Not so important
a) Price 39 5
b) Financial assistance / credit facility 40 4
c) Fuel efficiency 44
d) Style / looks 35 5 4
e) Comfort and convenience 38 6
f) Durability 37 6 1
g) Brand image 20 18 6
h) Advertising 6 19 19
i) After sales service 44
In response to this question, as revealed by respondents, the attribute “fuel
efficiency” and “after sales service” ranked top followed by “financial
assistance
Diagram2.2
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Q. No. 3. A major factor “Influence”, which induces a person to buy
anything (herein referred to as SUVs) was revealed by the respondents through
their response to this question.
Table No. 2.3
Source of Influence Percentage
Self 48%
Family 28%
Friends 10%
Colleague 2%
Others 0%
Don’t own a SUVs 12%
Diagram No. 2.3
From the responses obtained, it is found that self-motivation is the major role in purchasing a SUVs. Of the 50 considered respondents
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Q. No. 4 The price factor and payment mode also plays a pivotal role in the
buying behaviour of a customer. Respondents, being customers to respective
companies, also looks for the most convenient mode of payment. Therefore, this
question was designed to know their preferred mode of payment.
In response to this query with four different options like (a) Cash
(b) Bank finance (c) Private finance (d) Others, respondents numbering 21
opted to go for Bank Finance, for the purpose of low and reducing balancing
method of charging interest, whereas 19 respondents opted to go for private
finance for their lesser paper work despite interest being flat. Of the rest 1 opted
for cash and remaining 3 opted for other modes of purchase.
Table No.2.4
Options No of respondents
Cash 1
Bank finance 21
Private finance 19
Others 3
Diagram 2.4
Q. No. 5 This question was designed to know the overall performances that
were being experienced by the respondents from their SUVs. Also, an open-
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ended part in question was offered to reveal the exact kind of problem that they
have experienced from their SUVs.
80% of respondents were satisfied with the overall performance of the SUVs whereas remaining 20% were partially or were not satisfied with their SUVs’s performance.
Table No. 2.5
Options Percentage
Yes 80%
No 20%
Diagram No. 2.5
Q. No. 6 Another major factor playing the role in decision making of buying or
buying behaviour of respondents was “After sales service”. So, this question
was designed to know the satisfaction level on the after Sales service of
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respective brands, received by the respondents, which in other words are
considered as the customers of respective brands.
Table No. 2.6
Options Percentage
Yes 100%
No 0%
Diagram No. 2.6
Q. No. 7 This question was designed to know the next option, if any respondent
is willing to go for a new one. To this query, 27.27% respondents were
willing to go for latest model of SUVs whereas the remaining were
happy to be contended with what they have.
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Table No. 2.7
Options Percentage
Yes 27.27%
No 82.73%
Diagram No. 2.7
Q. No.8 In terms of technical feature expectation of the respondents, it was
found that all the technical feature are expected by the customers.
Table No. 2.8
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Sl. No. Technical featuresYes
No
1. High engine power 100% 0%
2. High fuel efficiency 95% 5%
3. Brakes 100% 0%
4. Tyres & Wheels 80% 20%
5. Power Steering 98% 2%
6. Suspension 100% 0%
7. Power window 80% 20%
Diagram 2.8
Q.No.9. This question was targeted to extract if they recommend M&M to
others. To this response 10 respondents out 12 (possessing Mahindra
brands of SUVs) are recommending whereas remaining 2 are not doing
so.
Table No. 2.9
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Options No of respondents
Yes 10
No 2
Diagram No. 2.9
PA
RT – B
This part was intended for those respondents who were not possession of a four-wheeler SUVs. To this part only 6 respondents responded.
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Q.No.1 The never-ending choosy human beings were asked to extract their
preference of brands when they go for their new SUVs. To this question
only two respondents preferred to go for Hyundai brand of SUVs
whereas 3 opted for Mahindra and remaining 1 opted for TATA.
Table No. 3.1
Brands No of respondents
Hyundai 2
Fiat 0
Mahindra 3
Chevrolet 0
Toyota 0
TATA 1
Skoda 0
Ford 0
Diagram 3.1
Q.NO.2 To know the specific model of SUVs that the respondents would like to
go for in near future are presented herein below in tabular form. The responses
were obtained in the form of an open-ended response.
Table No. 3.2
Models No of respondents
Hyundai’s Santro l 2
Mahindra Xylo 1
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Maruti’s 800 2
TATA’s Indica 1
Diagram No. 3.2
Q. No.3: This question was attempted to extract the factors, which plays a
major role in the buying behaviour of the customers. All the factors were found
to be important for the respondents.
Table No. – 3.3
Sl. No.
Attributes Very Important
Important Not so important
a) Price 6b) Financial assistance / credit
facility6
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c) Fuel efficiency 6d) Style / looks 6e) Comfort and convenience 6f) Durability 6g) Brand image 6h) Advertising 6i) After sales service 6
Diagram 3.3
Q. No. 4: The price factor and payment mode also plays a pivotal role in the
buying behaviour of a customer. Respondents, being customers to respective
companies, also looks for the most convenient mode of payment. Therefore, this
question was designed to know their preferred mode of payment.
In response to this query with four different options like (a) Cash (b) Bank
finance (c) Private finance (d) Others, Out of a total of six respondents, one
respondent preferred cash, two respondents preferred Bank finance and three
respondents preferred private finance.
Table No. 3.4
Options No of respondents
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Cash 1
Bank finance 2
Private finance 3
Others 0
Diagram – 3.4
Q. No. – 5 : This question was framed to know about the respondents interest
on the various promotional schemes, and was found that out of 6 respondents
100% were interested for the different promotional schemes which is shown in
the following table.
Table – 3.5 (a)
Options No of respondents
Yes 6
No 0
Table 3.5 (b)
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Sl.No. Scheme Very
Important
Important Not so important
1 Price discount 6 -- --
2 Exchange offer -- 4 2
3 Free gift -- 3 3
4 Installment facility 4 2 --
5 Interest free
installments
6 -- --
Diagram No. 3.5 (b)
CONCLUSION
Since Indian Automobile market is continuously in the prowl of surging as a
major SUVs manufacturer, people are purchasing SUV as there is increase of
income of common people as well as change in tastes and preferences of
consumers. It is important for the SUVs manufacturers and SUVs dealers to be
able to understand the different factors affecting the extent in SUVs purchasing
behaviour. People are more conscious about the on spot information provided
about various SUVs who serves according to the needs and wants of the
customer. The type of technology used and the wider reach of the service
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stations also affect the most on SUVs purchasing decision. While government
obligations and various policies like import duties, custom exemptions is seen
as second most affecting driver of purchase of SUVs. Factor 3 includes family
needs; brand image; income level; special family programs/events like
Anniversary, Birthday; insurance facility; credit SUVs acceptance; SUVs
accessories affects customers SUVs purchase decision causing a variance of
3.080.This shows that importance of family decisions, special occasions in
family and the various services provided by SUVs dealers. includes installment
payment facility; location of the SUVs dealer shop; looks; availability of
service station showing customers accessibility to the service provided. Factor 5
shows the impact of various promotional activities and extra SUVs taken by
SUVs dealers. Factors 6 shows the impact of suggestion provided by family
members and peers as well as price and after sales service provided. includes
the infrastructural benefits of the shop and the variety of SUVs it stores .The
last but not the least ones shows the impact of factors of technical specifications
of the SUVs and the festivel season offersThis study was conducted to find out
the consumer buying behaviour of SUVs in special reference to the Mahindra
brand in Shimla. The findings and analysis revealed many advantages as well as
disadvantages for the Mahindra and Mahindra Pvt Ltd.
Though the M&M is the faster growing company and leading in the
market facing a stiff competition from Hyundai and Tata motors in the Shimla.
It has been observed that Mahindra adopted many promotional strategies
and company’s marketing channel is also satisfactory.
Now a days people are most aware about after sales service. The dealers
also expect M&M has over come this problem and facilities should be improved
for meeting the after sales service requirement effectively.
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The majority of customers expect loan or installment facilities. The
M&M has joined hand with State Bank Of India and many private bank to
promote this facilities.
As most of the existing and prospective customers adults, M&M should
introduces stylish Motor SUVs which compete its competitors product.
But M&M to meet the expectations of new generation people who are the
prospect, or customers has recently introduce SUV hoping to fulfill the demand
of the new generation.
As this study was conducted for educational purpose with the aim to give
necessary information to the organization, any mistake by the researchers
should be overlooked considering his inexperience in the field of marketing
research.
LIMITATION
The study suffers from many limitations of this report are enumerated as the
following:
Firstly, being the whole project dependent on primary data, the study has gained
vulnerability.
Secondly, the survey was restricted only 50 respondents in whole Shimla and as
such may not be true representative of the entire Shimla.
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Thirdly, the major constrain was the time factor, as the study have to be finished
within the stipulated time period.
Fourthly, lack of interest and unenthusiastic response may have allowed
biasness to creep this report.
Finally, lack of conclusions, which have been drawn, are subject to criticism at
any stages of its analysis and presentation. This report may not provide the best
possible market scenario and the efforts can always be made to have this project
report more effective and useful.
RECOMMENDATIONS
Based on the findings drawn from the project’s analysis, certain
recommendation need to be made as regards to the future course of action
M&M Pvt Ltd., which can go a long way in improving the Brand Awareness of
the Company in the SUVs market. The main recommendations are:
1. M&M should continue with its range of innovative products. At the same
time try to add value to its existing products so that it can cater to the
present day requirements. As the study reveals that majority of customers
are aged 20 – 40 years the needs and wants should be kept in mind while
designing new products.
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2. There should be proper synchronization between order placed an delivery.
The distribution channel should be enhanced and the models should be
readily available in the market.
3. As the buying decision of the buyer has influenced by himself, company
should target them through demonstration and advertisement.
4. As the market for the financial institutions are increasing, the company
should target them through demonstration and advertisement.
5. Facilities should be provide to the dealers so that they can extend them to
the customers while purchasing this brand.
6. Increase in sales promotion budgets to develop a point of purchase display
and to participate to a greater extent in Trade shows and similar kind of
shows and this will motivate the non-users to try out the products.
7. The company can sponsor local cultural programmes like Bihu festival of
Assam holding Bihu competition at least once in a year and for attracting
the youth it may sponsor sports events also.
8. The company can make charitable donation to different organizations. It can
extend their helping hand to the people hotted by natural havoc like flood,
draught, earthquake etc. to win the hearts of the mass people which will
build a good image of the Company among them.
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9. As the market for the financial institutions are increasing, the company
should come up with various schemes, which will induce them to influence
the customer for the product. This includes offering various gifts, packages
and financial incentives like higher commission as compared to other four-
wheeler companies.
10. Incentives and financial benefits provided to the dealers should be
maximized to maintain their level of satisfaction and motivation.
Annexure
Bibliography
Name of the Author/Publisher Year of Publication Name of the Books
1. Kotler Philip Eighth Edition (1994) Marketing Management
2. RSN Pillai Bhagavathi Thirteenth
Edition(2003)
Modern Marketing
Principle and Practices
3 C.R. Kothari Second Edition (1990) Research Methodology
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Websites:-
http://www.wikipedia.org
http://www.mahindra.com
http://www.google.com
Questionnaire
Respected sir/madam,
I am Management (MBA) student at Sikkim Manipal University. I have been assigned a project in the context of which I am conducting a study on “Customer’s buying Behavior” on Mahindra and Mahindra in Solan, I would like to request you kindly to spare a few minutes for answering some questions. Your answers will be kept strictly confidential and will be used for academic purpose only.
1.Name of the respondent:………………………………………………………
2. Address: ………………………………………… Phone no: ………………
3. Occupation: (a) Service (b) Business (c) Students
(d) Others
4. Age group.
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(a) 20 to 25 years (b) 26 to 30 years (c) 31 to 35 years
(d) 36 to 40 years (e) above 40 years.
5. Monthly income:
(a) Rs. 15,000 to 25,000/-
(b) Rs 25,000 to 35,000/-
(c) Rs. 35,000 to 45,000/-
(d) Above 45,000/-
6. What are the different brands of SUVs you are aware of?
(a) Hyundai (b) Maruti (c) Chevrolet
(d) Toyota (e ) Skoda (f) Ford
(g) TATA (h) Mahindra
7. How did you aware of different brands of SUVs?
(a) News papers (b) Magazines
(c) T.V. add (d) Trade fairs
(e) Friends (f) Family members
(g) others please specify………………………………………………..
8. Do you own a SUVs?
(a) Yes (b) No.
If yes please respond to Part A.If no please respond to Part B.
PART A
(1) Which Brand of SUVs do you posses ?
(a) Hundai (b) Fiat (c) Maruti
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(d) Chevrolet (e) Toyota. (f) TATA
(g) Mahindra. (h) Skoda (i) Ford
(2) How important were the following attributes before you decide to buy the existing SUVs?
Sl.
No.
Attributes Very
Important
Important Not so
important
a) Price
b) Financial assistance / credit facility
c) Fuel efficiency
d) Style / looks
e) Comfort and convenience
f) Durability
g) Brand image
h) Advertising
i) After sales service
j) Millage
(3) Who influence your decision in purchasing SUVs?
(a) Self (b) Family
(c) Friends (d) colleague
(e) Others. (f) Don’t own a SUVs
4) What was your mode of payment while purchasing the SUVs ?
(a) Cash (b) Bank finance (c) Private finance (d) Others
Please Specify ………………………………………………………….
5) Are you satisfied with the overall performance of your existing SUVs?
(a) Yes (b) No
If No, Kindly specify the problem ……………………………………………………
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…………………………………………………………………………………………
6) Are you satisfied with the after sales service of your SUVs ?
(a) Yes (b) No
If No, Kindly specify the problem ………………………………………………………………………………………………………………………………………………
7) Are you planning to purchase a latest model of SUVs ?
(a) Yes (b) No
If Yes, Kindly specify the Brand ……………………………………………………
8) Which of the following technical features do you accept from your new SUVs that dose not exist in the old SUVs? Sl. No. Technical features Yes No
1. High engine power
2. High fuel efficiency
3. Breaks
4. Tyres & Wheels
5. Power Steering
6. Suspension
7. Power window
9) For the possessing customers of Hyundai SUVs, do you recommend others to purchase Hyundai SUVs?
(a) Yes (b) No.
PART B1) Which brand of SUVs would you like to purchase in near future?
(a) Hyundai (b) Fiat (c) Maruti
(d) Chevrolet (e) Toyota. (f) TATA
(g) Mahindra. (h) Skoda (i) Ford
2) Which model of SUVs would you like to purchase in near future ?
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Model Name ………………………………………………………
3) Please indicate relative importance of the following factors, which you will consider before purchasing your new SUVs?
Sl. No.
Attributes Very Important
Important Not so important
a) Priceb) Financial assistance / credit facilityc) Fuel efficiencyd) Style / lookse) Comfort and conveniencef) Durabilityg) Brand imageh) Advertisingi) After sales service
4) What mode of finance will you prefer for purchasing a new SUVs ?
(a) Cash (b) Bank finance (c) Private finance (d) Others
5) Do you want avail any promotional scheme while purchasing the new SUVs ?
(a) Yes (b) No
If yes please indicate the relative importance of the following promotional scheme.
(Please put a tick in each row)
Sl No. Scheme Very important
Important Not so important
a) Price discountb) Exchange offerc) Free giftd) Installment facilitye) Interest free installment
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Thanking you,
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